Business Facilities - January 2008 - (Page 10) IDAHO IDAHO CORPORATE ADVANTAGE: Large companies that relocate headquarters or invest in a major administrative expansion in Idaho are eligible to receive a 6% tax credit of up to $5 million in any one year, and an enhanced new jobs tax credit starting at $1,500 and climbing to $3,000 per job depending on salary levels. A 10% real property improvement tax credit of up to $500,000 in any one year is also available along with a temporary property tax rebate for new headquarters and administrative buildings of up to $2 million a year. Companies also qualify for a rebate of all sales taxes paid on materials used in the construction of new buildings. IDAHO BUSINESS ADVANTAGE: Available for smaller businesses making a minimum $500,000 investment in a new facility and creating at least 10 new jobs paying above $40,000 annually plus benefits. Qualifying companies receive an enhanced Investment Tax Credit of 3.75% up to $750,000 in any one year, a new jobs tax credit starting at $1,500 and climbing to $3,000 per job, a 2.5% real property improvement tax credit up to $125,000 in any one year along with a 25% rebate on sales tax paid on construction materials for the new facility. NEW JOBS INCOME TAX CREDIT: This credit can be applied for new jobs paying more than $24.04/hour, ranging from $1,500/per job up to $3000/per job on a graduated scale. The credit has a 10-year carry forward provision. New jobs paying between $15.50/hour and $24.03/hour are eligible for the standard $1000/per job income tax credit. 3% INVESTMENT TAX CREDIT: This credit is available for qualifying new investments in Idaho. It can offset up to 50% of state income tax liability and may be carried forward up to 14 years. ILLINOIS ECONOMIC DEVELOPMENT FOR A GROWING ECONOMY (EDGE): The EDGE program can provide tax credits to qualifying companies equal to the amount of state income 10 JANUARY 2008 taxes withheld from the salaries of employees in the newly created jobs. The non-refundable credits can be used against corporate income taxes to be paid over a period not to exceed 10 years. A company must agree to make an investment of at least $5 million in capital improvements and create a minimum of 25 new full-time jobs in Illinois. For a company with 100 or fewer employees, the company must agree to make a capital investment of $1million and create at least five new full-time jobs. The HIGH IMPACT BUSINESS (HIB) PROGRAM: Under HIB, businesses may qualify for investment tax credits, a state sales tax exemption on building materials, an exemption from state sales tax on utilities, and a state sales tax exemption on manufacturing equipment purchases, repair, and replacement parts. The project must involve a minimum of $12 million investment causing the creation of 500 full-time jobs or an investment of $30 million causing the retention of 1,500 full-time jobs. RIVER EDGE REDEVELOPMENT ZONE (RERZ) PROGRAM: RERZ zones in Aurora, East St. Louis, and Rockford offer sales tax exemption and property tax abatements, plus an Environmental Remediation Tax Credit. Qualifying Illinois manufacturers may earn a MANUFACTURER’S PURCHASE CREDIT (MPC). The MPC is earned when a manufacturer purchases manufacturing or graphic arts machinery and equipment that qualify for the existing sales/use tax exemptions. The MPC may be used to pay state sales or use tax on future purchases of qualifying production-related tangible personal property. The MPC is equal to half of the 6.25% state tax that would have been owed if the purchase was not otherwise exempt. THE EMPLOYER TRAINING INVESTMENT PROGRAM (ETIP) offers grants that can reimburse new or expanding companies for up to 50% of the cost of training their employees. INDIANA ECONOMIC DEVELOPMENT FOR A GROWING ECONOMY (EDGE) PROGRAM: EDGE credits are calculated as a percentage of payroll tax withholding for net new Indiana jobs, and they may be awarded for a term of up to 10 years. Each year a limited amount of EDGE credits are available for the retention of jobs in highly competitive situations. The INDUSTRIAL RECOVERY TAX CREDIT provides an incentive for companies to invest in facilities requiring significant rehabilitation or remodeling expense. After a building has been designated as an industrial recovery site, companies may be eligible for a tax credit calculated as a percentage of qualified rehabilitation expense. The credit is in the amount of the qualified investment multiplied by a percentage based on how long ago the plant was in service. THE HOOSIER BUSINESS INVESTMENT TAX CREDIT PROGRAM provides a credit against a company’s Indiana tax liability. The credit amount is based on a company’s qualified capital investment with the final credit amount determined by the Indiana Economic Development Corporation based on an analysis of the economic benefits of the proposed investment. A company’s credit award may be up to 10% of the qualified capital investment and may be carried forward for nine years. HEADQUARTERS RELOCATION TAX CREDIT: When a business relocates its corporate headquarters to Indiana, it is entitled to a credit against its state tax liability. The credit equals 50% of a corporation’s costs of relocating its headquarters to Indiana. A company must have a worldwide annual revenue of at least $100 million to qualify, and after relocation, the corporation must have 75 employees in Indiana. IOWA COMPUTER SERVER INCENTIVES: The state of Iowa has enacted specific incentives for computer server farms. Purchases of computers, cooling systems, power infrastructure, electrical generators, and other equipment for web search portals that invest at least $200 million are exempt from sales and property taxes. The INFORMATION TECHNOLOGY JOINT VENTURE FUND provides financial awards to information technology companies entering into a joint venture with another firm to commercialize existing technology products and services. Eligible businesses must be Iowa-based, demonstrate ability for a success-
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